Several years ago, a number of Fortune 500 companies hired the Wharton School of Business to answer a question that every business owner has probably considered. “What result can be expected for a certain amount of money spent on advertising?” Several dozen small businesses were studied, tracking the relationship between advertising and ROI for seven years. Although the final report was more than 2,500 pages, this extensive study reached only three conclusions.
1. There is no Magic Formula That Guarantees “X” Results From “Y” Advertising Dollars
Advertising must be done intelligently and as part of an overall marketing strategy in order to be effective. Businesses of all sizes benefit from the assistance of marketing experts in order to maximize their advertising budgets with the most advantageous media placement.
2. Results are Generated by the Message
This common-sense finding actually contradicts the belief that simply getting the company’s name in front of the public will help generate a positive ROI. It all depended upon the message. A well-written and believable message that spoke to and connected with the consumer was necessary. Consider the ads that run during Super Bowls. The winning ads are usually funny, warm and just as enjoyable with each repetition, creating a positive impression of the brand.
Content Marketing: Google and the other search engines consider fresh and informative content as one of the major factors in ranking websites. Whether the content is delivered on a website, a billboard, a radio or TV ad, a newspaper, magazine or some other format, the message is all-important, determining the ROI. Boring or poorly thought-out messages will be ignored.
Video: Today, video marketing cannot be ignored and is trending consistently up. Consumers prefer well-done video over text by a factor of 4 to 1. About 70% of all marketers are increasing their video budgets. Technological advances are pushing programmatic video that is responsive to individual consumer interests. It is projected that targeted video will account for 2/3 of the total national digital spending in America by 2019.
3. Repetition is Critical
A consistent and positive message should generate business growth measured in dollars. The second year should be double that of the first year with the third year’s results tripling that of the first year. After the third year, results are uncertain, with the deciding factor being the business itself.
All types of media can be useful. For example, outdoor advertising is still extremely effective, reaching a high number of people for the dollars spent. When considering radio, cable or broadcast TV ad, broadcast placement is extremely important. Matching the audience to the ad is essential. Today, digital marketing and effective use of social media is essential.
Red Crow Marketing Inc. considers itself a personal-sized advertising agency. Their mission is to provide each client, large or small, with exceptional, one-on-one service for their marketing and advertising needs. You’ve seen their work. Call and find out how they could help your business grow.